Bond Rout Sends Dow, S&P Into Red As USD Jumps

The correlation between stocks and bonds just turned negative (normal) for the first time in 2 months... (not ended well in the past)

 

And it appears risk-parity funds are under pressure to delever - US equity and bond markets are being dumped as the USD index rallies this morning.

 

Cable's collapse and a plunge in SEK have pushed the USD Index back up towards 8 month highs and US equities back into the red for the day...

Pushing the USD Index back towards 99.00...

And stocks don't love it...

As risk parity unwinds accelerate.